INSTITUTIONAL EQUITIES

THEMATIC

Indian Pharmaceuticals- Riding High on Patent Expiry

INDIAN HEALTHCARE B P EQUITIES

12March,2010 We initiate coverage on the Indian pharmaceutical/healthcare SectorOutlook sector with a bullish note on the back of huge patent expiry opportunityintheUSAalongwithothermarket.Whileitismuch Genericdrugsales talkedaboutthatthepatentcliffwon'thituntil2011(FY12),we view 2010 (FY11) will see patent expirations of some of the industry's blockbuster drugs with a total market size of ~US$25bn (Rs115,000cr) and would be the beginning of the goldenopportunitycoming. Big opportunity: We view FY10FY15 as being the Golden years fortheIndianhealthcareindustry.TheIndiandrugcompaniesare hugelydependentonthelargestpharmamarketintheworld,the USA, amounting nearly a half of the total pharma sales by Indian(Source:IMS) companies. We foresee a tremendous opportunity for the Indian generic companies to cash in the US$ 150bn (Rs700,000cr) worth ofpatentexpiryopportunityintheUSAalone. BigBoysloosingpatents:With an estimated US$25bn (Rs. 115,000cr) worth of patent opportunity, there are a number ResearchAnalyst of blockbuster drugs going offpatent in FY10. The Top10 drugs SouvikChatterjee going off patent in FY10 are: Cozzar/Hyzzar (Merck), Protonix Tel:+912261596410 (Wyeth), Flomax (Boehringer Ingelheim), Arimidex (Astrazinca), souvikchatterjee@bpwealth.com Climara (Bayer), Inverase (Roche), Hycamtin (GSK), Aricept (Eisai), Levaquin (OrthoMcNeil) and Gemzer (Eli Lilly). OurFY10 InstitutionalSales patent expiration list includes drugs whose patent actually DivyaAroraJhangiani expires, but managed to get a sixmonth extension due to Tel:+912261596404 pediatricexclusivity. Bullish

Email:divyaarora@bpwealth.com

Valuationsummary:

SunPharma Dr.Reddy'sLab Ranbaxy* Lupin

*CYforRanbaxy

Target P/E(x) Rs. 1900 1340 552 1970 FY11E 22.5 18.4 32.2 16.8

EPS(Rs.) FY10E 62.1 52.0 14.1 72.5 FY11E 72.9 63.6 21.7 93.4

RoE(%) FY10E 17.0 22.0 13.5 35.3 FY11E 17.8 26.0 17.8 32.4

EV/EBITDA(x) FY10E 26.0 9.0 18.6 16.7 FY11E 23.0 7.1 13.8 13.2

(Source:Bloomberg,BPInstitutionalResearch)

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IndiaPharmaceuticals

ListofContents

SL No.

Page No.

1 2 3 4 5 6 7 8 9 10

Indian Pharmaceutical- Riding High on Patent Expiry Golden Opportunity Ahead For Indian Pharmaceutical Industry Generic market- Highly Price Competitive 2010-2015: A US$240 billion opportunity Are the Indian Pharma companies ready? Stupendous market opportunity for Indian companies The Obama Healthcare bill to add generic market size Generic acceptability in the US Cost- Benefit analysis of Generic Drugs Year wise drug patent expiry in the USA

1 3 4 4 5 5 6 7 8 9

Companies Sun Pharmaceuticals Dr. Reddy's Lab Ranbaxy Labs Lupin 11 13 15 17

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals GoldenOpportunityAheadForIndianPharmaceuticalIndustry: The US accounts for nearly 45% of the global pharma sales and nearly the US$150bn worth of drugs same for the Indian drug companies as well. This decade (20102020)going offpatent within a provides a huge opportunity to the Indian generic companies in term of period of next 5 years market opportunity. An estimated US$240bn (Rs18,00,000cr) worth of with an average of drugs going offpatent within a period of next 5 years with an average of US$48bnperyear. US$48bn(Rs220,000cr)perannum. According to Mc Kinsey & Company top 20 pharmaceutical companies, the averagepatentexpiryislikelytofallby58%fromUS$48bn(Rs220,000cr)to US$16.5bn (Rs75,000cr) per annum between 20162020. We expect 2010 2015 to be a golden period for Indian generic companies to gain from patentexpiry. Fig1:Blockbusterdrugsgoingoffpatentbetween201015

(Source : Bloomberg, BP Equities Institutional research)

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals GenericmarketHighlyPriceCompetitive: The Indian pharmaceutical companies are likely to face stiff competition from other international players like Actavis, Cobalt, Genpharm, Invagen, Price of the generics is Mylan, Roxane, Sandoz and Watson who are also likely to enter the generic 400%60% lower than the pharma play in a major way. We expect the launch of authorized generics price of the patented bypatentholdersandotherglobalgenericgiantswouldaddupcompetition product resulting in huge and pricewars in thegeneric pharmaspace in theUS. Drug prices in the US priceerosionofthedrug. and other developed market where the formulation patents are likely to expire, are likely to fall sharply post the patent expiry. The price of the generics is 40%60% lower than the price of the patented product resulting in huge price erosion of the drug. We expect the integrated Indian pharma companies to gain significant market share in the US due to the pricing advantage. 20102015:AUS$240billionopportunity: Most of the block buster drugs patents are set to expire between 2010 and Average market opportu 2015 having a cumulative sales of ~US$240bn (Rs11,00,000cr.). This would nity of US$48bn/year imply an average market opportunity of US$48bn (Rs180,000cr.) per which is nearly the annum which is nearly the aggregate of the top Indian pharma companies aggregate of the top annual sales. However, the price of the branded drug is likely to shrink by Indian pharma companies over 90% on patent expiry, when the products become generic. The Indian annualsale. generic players can look forward to an average potential of Rs120,000 150,000crperannum. Fig2:Patentexpiryopportunity:20102020(US$Bn.)

(Source : Bloomberg, BP Equities Institutional Research)

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals AretheIndianPharmacompaniesready? We believe that the Indian pharmaceutical companies are well on the course of being a global player especially in the generic pharma space. Indiapharmacompanies, Most of the Indian pharma companies have very strong presence in the US have more than 50 FTFs filing with the USFDA market, have near about thousand ANDAs (Abbreviated New Drug Approvals) filed with the USFDA which includes more than 50 FTFs, highest highestbyanycountry. byanycountry. Indian companies have over the years matured in the US healthcare business and have been successful in challenging patents and successfully claimed their right of 180days marketing exclusivity under the Hatch WaxmanAmendments.TheIndiancompaniesedgeouttheirglobalpeersin terms of cost efficiency as Indian generics are 1525% cheaper than manufacturedbyothercompanieselsewhere. Theaggregatemarketable We see the next five years as a stupendous growth opportunity for the opportunityforIndian Indian pharma companies particularly in the US and other developed pharmacompanieswould markets. The aggregate marketable opportunity for Indian pharma beintherangeofUS$ companies would be in the range of US$750bn790bn (Rs350,000 750bn790bn 360,000cr). We expect a cutthroat price competition among the Indian pharma companies in the US generic market as multiple companies have beengrantedANDAincludingParaIVapprovalforthesamemolecule. We expect the Big Pharma (Top 5) Indian companies would be the major beneficiaries of the patent expiry opportunity. Dr. Reddys Labs US$90bn (Rs400,000cr), Cipla US$61bn(Rs280,000cr),SunPharma US$33bn (Rs150,500cr), Lupin US$52bn(Rs230,000cr) and Ranbaxy US$ 50bn(Rs 230,000cr) are as per our research, the important gainers of this opportunity. Fig3:MarketopportunityforIndianpharmaceuticalcompanies StupendousmarketopportunityforIndiancompanies:

(Source:Bloomberg,BPEquitiesInstitutionalResearch)

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals TheObamaHealthcarebilltoaddgenericmarketsize: The US Presidents new healthcare reform program aims to provide The US government plans coverage for the nations 46 million uninsured, to improve the quality of US$650700billion spend care, and constrain the growth of healthcare spending. The US government ing leading to greater plans US$ 650700 billion spending for making the system more efficient utilization of generic andcosteffective. drugs. With respect to the Indian pharmaceutical industry, the new program will expand the market by extending access to the presently uninsured. In addition, the plan will seek to achieve savings by focusing on costeffective therapies determined through new comparative analytical tools. In general, this approach should lead to greater utilization of generic drugs instead of moreexpensiveformulationmedicines. Fig4:Costcomparison:Brandedvs.Generics

(Source:BPEquitiesInstitutionalResearch)

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals GenericacceptabilityintheUS: In a survey conducted by the Epocrates in Feb 2009, it has been observed Expectgenericdemandto that 22% of the respondents medical practitioners prefer generic drugs. growby2530%overthe Though still more than 75% of the responded opted for the branded, the next5years generic demand is in the rise mainly because of the cost advantage. We expect generic demand to grow by 2530% over the next 5 years as more andmorebrandeddrugpatentexpireandmoregenericdrugsareavailable. Fig5:GenericacceptabilityintheUS

(Source:EpocratesFeb2009,BPEquitiesInstitutionalResearch)

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals CostBenefitanalysisofGenericDrugs: Differentiation: A Generic Drug is a copy that is the same as a brand name drug in dosage, safety, strength, how it is taken, quality, performance and intendeduse. Differentiation Focus: In manufacturing generic drugs, the same active ingredients (APIs) are used and are shown to work the same way in the body. It also has the same risks and benefits as their brand name counter parts. Also, generic drugshave thesame quality,strength,purityand stabil ityasbrandnamedrugs.ItisseenthatGenericDrugsworkinthesameway andinthesameamountoftimeasbrandeddrugs. Cost Leadership: Both branded and generic drugs are manufactured by conforming to International standards. Generics are as good as branded drugs and so viewed by the third party administrators like the USFDA. Thus if generic drugs are bought by the patient, the patient save money as well gain similar benefits of branded drugs. Generic drugs offer significant savings to consumers. The cost of generic drugs averages 40 to 60% below thecostoftheinnovatororbrandnamedrug. Cost Focus: The generic drugs are less expensive as compared to branded drugs. When patents of the original drug are nearing expiration, manufac turers usually approach the Government/Drug Control Department to sell generic versions. In the process, the consumers get genetic drugs at substantiallylowercosts. Fig6:Competitiveadvantageofgenericdrugs

(Source : BP Wealth Institutional Research)

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals Fig7:YearwisedrugpatentexpiryintheUSA

(Source : Bloomberg, BP Institutional Research)

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IndiaPharmaceuticals

COMPANIES

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals

SUNPHARMACEUTICALSLtd.(SUNPIN)
InvestmentRational

BUY

Strongdomesticbusinessmodel:WeareverypleasedwithSunPharmas CMP:Rs1640 domestic business model, which comprises of mainly highmargin, high Target: Rs1900 growththerapeuticareassuchascardiovascularmedicine(CVS),diabetes, neuropsychiatry (CNS) and gastroenterology. SunPharma effectivelyBSEcode:500387 addresses about 3540% of the domestic pharma market with a market NSESymbol:SUNPHARMA Bloomberg:SUNPIN shareof~4%withhighlevelofbrandrecognition. Caraco operations to normalize: Sun Pharma suffered a major setback in Reuters:SHCM.BO June2009,whenCaracostoppedproductionduetoUSFDAaction,leading tolossof1516%ofSunsregularsales.Webelievethattheoperationsin KeyData Caraco likely to be normalized on the account of the various corrective Sensex: 17170 52weekH/L1770/970 measures taken which include reducing workforce to exploring possibility O/sShares(mn):208 of shifting manufacturing of key components to different locations and MarketCap(RsBn):350 establishing a proper process control system at its facilities in Detroit, Michigan. While the company has not provided any timeline for Caraco Averagevolume revival, we estimate production at these facilities is likely to resume by 184614 H2FY11E. Having said so, taking revenues back to historic levels may take 3mnts an additional year for SUN & Caraco, as the lost market share will haveto 6mnts 238980 bewonovertime. 1year 326701 Effexor XR upside likely in the near term: Effexor XR (patent expires in Q2FY11) is in our view the most promising opportunity for SUN. After morethanayearofdelay(duetoOsmoticascitizenpetition),theUSFDA ShareHoldingPattern(%) rejectedthepetitionclearingthewayforapprovalofSunsproduct.Inour view, if approved,Effexor XRcould add up to Rs2.8 andRs4.5 to ourFY10 andFY11EPSestimatesrespectively.Wehowever,expecttheopportunity tobelimitedintime,asTevaislikelytolaunchanABratedgenericinJuly 2010. Valuation:WevalueSunpharmaat25xFY11Eearningswithatargetprice of Rs 1900. Our earnings calculation takes in to account the ~US$34 bn patent expiry opportunity in the US between 201015 and potential launch of generics version of block buster drugs like Arimidex, Arecept, Protonix,Plavix,Zometa,CymbaltaandGlivec.

Valuationsummary P/E Price/Sales Price/Book Price/CashFlow DividendYield EV/EBITDA

ResearchAnalyst

(Source : Bloomberg consensus estimate, BP Institutional Research)

FY09 20.6 8.7 5.2 20.5 0.74 20.3

FY10E 26.4 8.5 4.3 25.0 0.7 26

FY11E 22.5 7.5 3.7 21.7 0.9 23

SouvikChatterjee Tel:+912261596410
souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals
Financialoverview Rs.Mn. Sales EBITDA EBIT PreTaxProfit NetIncome EPSAdjusted CashFlowPerShare DividendsPerShare BookValuePerShare FY08 28283 11404 11043 11837 10663 53.0 53.7 9.0 208.4 FY09 39085 17971 17825 19149 16544 79.7 80.1 12.2 315.1 FY10E 40303 13262 12431 13979 12787 62.1 66.2 12.4 387.0 FY11E 45817 15738 14634 16774 15163 72.9 76.4 14.1 446.8

EPSandRoEgraph
100 90 80 70 60 50 40 30 20 10 FY05 FY06 FY07 FY08 FY09 RoE(%)
(Source : Bloomberg, BP Institutional Research)

45 40 35 30 25 20 15 10 FY10E FY11E

EPS(Rs)

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals

Dr.REDDYSLABORATORY(DRRDIN)
InvestmentRational

BUY

Strong pipeline and limited competition products to provide growthCMP:Rs2079 Rs1340 opportunities: DRL has built up a strong pipeline of 62 ANDA pending for Target: USFDA approval of which 35 Para IV products including 13 of FTF status. BSEcode:500124 The company has strong visibility of utilizing these opportunities to the NSESymbol:DRREDDY fullest going forward. Fondaperinux (US$200mn with no competition), Bloomberg:DRRDIN AllegraD24(US$180mn)andLotrelarelikelytobematerializedinnext6 Reuters:REDY.BO 12monthswithlimitedcompetition.
KeyData

Launch of Omeprazole; potential upside: DRL has launched Omeprazole Sensex: 17170 (US$500mn) OTC in December 09 and we expect results to showup in 52weekH/L1257/378 O/sShares(mn):168 the coming quarters. We estimate Omeprazole OTC to contribute MarketCap(Rs.Bn)198 Rs5000mnintheDRLstoplineoverthenext2years. Betapharma to remain under pressure : The majorworryforDRLisyetto getover. Betapharmas(DRLsGermansubsidiary)performancecontinued to remain under pressure marked by a marginal growth of 2% due to lower pricing of AOK tender (90% of total Betapharma sales) and drop in market share for the nonAOK products. Going forward, we expect this business to come down further (degrowth of 25% in FY10). On the back of German market shifting to more tender based business, DRL took non cash hit of Rs8.6bn on intangible assets and goodwill. With write down of Rs8.6bn, the carry forward value of intangible on account of Betapharma is Euro93mn. Management has indicated that there may not be further impairment on Betapharma account. In order to protect the profitability ofBetapharma,companyisfurtherrealigningitsheadcountinGermany. Valuation: We value Dr. Reddys lab at 21x FY11E earnings of Rs 64. We have factored in the US$ 72 bn patent expiry opportunity in the US with the possible launch of the generic version of some of the block buster drugs like Cozzar (US$ 3.5 bn), Arimidex (US$ 1.8 bn), Actos (US$ 3.6 bn), Prograf (US$ 1.7 bn) and Zyprexa (US$ 4.7 bn). We expect DRLs earnings to increase by 45% by FY11E on the back of the 32% expected rise in FY10E. Valuationsummary
ResearchAnalyst

Averagevolume 3mnts 6mnts 1year

503461 616383 536471

ShareHoldingPattern(%)

P/E Price/Sales Price/Book Price/CashFlow DividendYield EV/EBITDA

(Source : Bloomberg consensus estimate, BP Institutional Research)

FY09 35.4 3.0 3.84 33.0 0.41 19.3

FY10E 26.8 2.8 4.54 15.8 0.52 15.6

FY11E 18.4 2.4 3.7 14.5 0.63 12.7

SouvikChatterjee Tel:+912261596410
souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals
Financialoverview Rs.Mn. Sales EBITDA EBIT PreTaxProfit ExceptionalItems NetIncome EPSAdjusted FY08 50006 8248 5040 2862 3101 4642 22.7 FY09 69441 16226 12412 4019 14992 5303 45 FY10E 71564 15646 10520 2246 9162 7052 52 FY11E 81142 16526 13262 13611 0 10799 64

EPSandRoEgraph
80.0 60.0 40.0 20.0 0.0 20.0 40.0 EPS(Rs) RoE(%)
(Source : Bloomberg, BP Institutional Research)

25 20 15 10 5 0 FY08 FY09 FY10E FY11E 5 10 15

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals

RANBAXY(RBXYIN)
InvestmentRationale

BUY
CMP:Rs460 Target: Rs552

Veltrex exclusivity to provide growth: The timely launch of Valtrex (valacyclovir)intheUSmarketwith180daysexclusivityandgrowthinthe last two quarters indicate that Ranbaxys worst is more or less over. With the approval for Valtrex coming through on time, Ranbaxys ability to successfullychangesitesandgetapprovalsintimeforitsotherFTFoppor tunitieshaveincreasedsignificantly,reinforcingourpositivestanceonthe stock.

BSEcode:500359 NSESymbol:RANBAXY Bloomberg:RBXYIN Reuters:RANBBO

Domestic business to add Viraat strength: Ranbaxy has rolled outKeyData projectViraattostrengthenitsleadershippositioninIndia.Thecompany Sensex: 17170 is extremely positive on the outcome of the project and hope that the 52weekH/L538/133 benefitswouldbevisibleinthefinancialsbyQ2CY10.Thecompanyisaim O/sShares(Cr):420 ing for significantly accelerated growth in India post the implementation MarketCap(RsBn)194 of this initiative. Domestic market revenues in Q4CY10 grew by 6% YoY to ~US$70m. OTC sales grew by 27%yoy on back of robust growth seen Averagevolume acrossthebrandsincludingthehealthsupplementcapsuleRevital. 3mnts 2171052 Flomax rejection a negative blow: The rejection of Ranbaxys generic 6mnts Flomax by the USFDA represents a loss of opportunity for Ranbaxy. The 1year loss of FTF advantage is likely to impact Ranbaxys ability to gain market shareaswellasmaximizegainsduringthelimitedexclusivityperiod.
2258567 2711357

Valuation: We value Ranbaxy stock at 23x CY10E EV/EBITDA arriving at a ShareHoldingPattern(%) target price of Rs 552, recommending Buy. We believe that Ranbaxys basebusinesslikelyto growby12%CAGRover the next23yearskeeping into consideration the the unabsorbed overheads at Paonta Sahib & Dewas as well as the high legal & consultancy charges being incurred to wards resolving the FDA issues at these plants. The stability on the cur rencyfront(USD/INR)willalsohelpRanbaxysbottomlinegrowth. Valuationsummary
CY09 CY10E CY11E

P/E Price/Sales Price/Book Price/CashFlow EV/EBITDA

na 25.8 29.6

32.2 23.4 3.9 21.7 18.6

20.9 20.6 3.4 18.5 13.8

ResearchAnalyst SouvikChatterjee Tel:+912261596410
souvikchatterjee@bpwealth.com

(Source : Bloomberg, BP Institutional Research)

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IndiaPharmaceuticals

Rs.Mn. Sales EBITDA PreTaxProfit ExceptionalItems[FxLoss/(Gain)] NetIncome EPSAdjusted

CY08 72414 5749 15000 3424 2965 4.6

CY09 73924 7124 10065 10856 9512 24.85

CY10E 81555 11319 9430 4235 6244 14.1

CY11E 92725 15289 13244 0 9662 21.7

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals

LUPIN(LPCIN)
InvestmentRational:

BUY
CMP:Rs1583 Target: Rs1970

Robust business model: LupinisoneofourtoppicksintheIndiangeneric pharmaceutical space owing to its robust and diversified business model. Its foray into high growth contraceptive segment along with a striking pipeline of Para IV drugs is likely to drive Lupins growth making it an attractive investment proposition. Strong US business (32% of revenues) coupled with steady domestic branded business (30% of revenues), high growth Japanese business (12% of revenues), and a globallycompetitive APIbusiness(20%ofrevenues)arethekeypillarsofLupinsrevenuebase. New chemical entity (NCE) model, revamped recently, provides broader dimensions to Lupins business model along with its strong IPR capability inourviewandwilltakeLupintothenextlevel. Japan to provide huge opportunity: We believe that Japan will be the next big opportunity after the US for the generic drug players. Japan with annual sales of over US$65bn is the second biggest pharmaceutical mar ket in the world and have the largest percentage of aging population. Lu pin,withitsacquisitionofKyowaiswellpositionedtograbthe earlyentry advantageintheJapanesemarket.

BSEcode:500257 NSESymbol:LUPIN Bloomberg:LPCIN Reuters:LUPN.BO KeyData Sensex: 17170 52weekH/L1624/580 O/sShares(mn):90 MarketCap(RsBn)141

Averagevolume 3mnts 6mnts

244949 262633

Contraceptives to be the next growth driver: The launch of high growth 1year 233316 highmarginoralcontraceptives(OC)intheUS,inourviewwillbethenext growth driver for Lupin in the medium term time horizon. Lupin currently has a portfolio of more than 20 OCs in the US and targets to double the OC portfolio by FY11E, this in our view will provide a big leap in terms of ShareHoldingPattern(%) LupinsgrowthintheUS.OCmarketintheUSisworthmorethanUS$3bn dominated mainly by Teva and Watson. We expect US$ 135140mn of revenuefromLupinsOCsegmentfrom2012Eonwards. Valuation: We recommend Buy on Lupin with a target price of Rs 1970 valuingitat21xFY11Eearnings.Webelievethatwithamarketableoppor tunity (patent expiry) of US$53 bn in the next five years in the US coupled withstrongpresenceinotherkeymarkets,Lupiniswellsettomovetothe nextorbitmakingitanattractiveinvestmentproposition. Valuationsummary
FY09 FY10E FY11E ResearchAnalyst

P/E Price/Sales Price/Book Price/CashFlow EV/EBITDA

27.92961 3.7 21.1

21.6 3.0 6.5 18.4 16.7

16.8 2.5 4.9 14.8 13.2

SouvikChatterjee Tel:+912261596410
souvikchatterjee@bpwealth.com

(Source : Company, BP Institutional Research)

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IndiaPharmaceuticals
Financialoverview Rs.Mn. Sales EBITDA PreTaxProfit MinorityInterest NetIncome EPSAdjusted FY08 27064 6361 5402 1.3 4082 45.6 FY09 37761 7284 6027 28.6 5015 56.0 FY10E 46685 9176 8193 0 6493 72.5 FY11E 55788 11623 10309 0 8358 93.4

EPSandRoEgraph

105 95 85 75 65 55 45 35 25 15 5 FY05 FY06 FY07 FY08 FY09 RoE(%) FY10E FY11E

45 40 35 30 25 20 15 10 5

EPS(Rs)

(Source : Bloomberg, BP Institutional Research)

souvikchatterjee@bpwealth.com

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IndiaPharmaceuticals

Notes

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IndiaPharmaceuticals Research Desk Institutional Sales Desk Disclaimer Appendix BP Equities Investment Rating : (Time range 12 months)

Page20of20

Tel: +91 22 61596464 Tel: +91 22 61596403/04/05

BUY (expected total return of 15% or more for Low-Risk stocks, 20% or more for Medium-Risk stocks and 30% or more for High-Risk stocks); ACCUMULATE (expected total return of 5%-15% for Low- Risk stocks, 10%-20% for Medium-Risk stocks and 15%-30% for High-Risk stocks, ); REDUCE ( expected total return of less than 5% for Low Risk stocks, less than 10% for Medium Risk stocks and less than 15% for High Risk stocks) and SELL [expected total return of (-5%) or less for Low-Risk stocks, -10% or less for Medium-Risk stocks, (-15%) or less for High-Risk stocks, and -20% or less for Speculative stocks].

Analyst(s) holding in the Stock : Nil Analyst(s) Certification:

We /I, Souvik Chatterjee, MBA (Fin) analysts and the authors of this report, hereby certify that all of the views expressed in this research report accurately reflect our personal views about any and all of the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Analysts aren't registered as research analysts by FINRA and might not be an associated person of the BP Equities Pvt. Ltd. (Institutional Equities).

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